Shutdown plan is detailed by Pine Point Mines

Mining will stop by July of this year, and milling operations by year- end, under a plan to shut down Pine Point Mines’ zinc and lead mining operations at Pine Point, N.W.T.

Shipping and sales of concentrate will continue up to three years after milling stops, the company says. Other limited activities including site reclamation and asset dispositions, will continue after production ceases.

The mine, which employs 440, has been operating under an accelerated production plan announced in December of 1985. The current production plan will result in a zinc concentrate inventory accumulation of about 400,000 tons by the end of this year, part of which is committed for sale to Cominco’s Trail, B.C., smelter.

This inventory would carry a value at cost of approximately $52 million.

Pine Point says discussions are under way with Cominco on placement of the remaining zinc concentrate. It’s expected that if current zinc and lead prices hold, cash flow this year will allow retirement of all bank debt.

Meantime, a final $2-million exploration program this year at Pine Point will explore the remaining areas of the property having reasonable potential for ore discovery.